Massachusetts Excise Tax Calculator
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How is Massachusetts Excise Tax Calculated?
The excise tax rate for vehicles in Massachusetts is set at $25 per $1,000 of the vehicle’s assessed value. This tax is charged on an annual basis, covering the entire calendar year, and is typically billed by the municipality where the vehicle is regularly garaged. In cases where the vehicle is registered in Massachusetts but garaged in another state, the excise tax will be billed by the Commissioner of Revenue.
If you own a motor vehicle that has been registered for a portion of the calendar year, rather than the full year, you will be required to pay the excise tax for the months during which the vehicle was registered, including the month of registration. For instance, if you register your vehicle on April 9th, you will be billed for the excise tax covering the months of April through December.
It’s important to note that there is a minimum excise tax amount of $5. Even if the calculated excise tax for your vehicle is less than $5 based on its assessed value and the duration of registration, you will still be required to pay the minimum amount of $5.
How is Vehicle Value Determined?
The value of your vehicle used to calculate the excise tax is not based on the price you paid when purchasing the vehicle or its current market value (often referred to as the “book value”). Instead, the value is determined by taking a percentage of the manufacturer’s suggested retail price (MSRP) for the vehicle in the year it was manufactured.
The MSRP is the price that the manufacturer recommends as the selling price for a brand new vehicle of the same make, type, model, and year of manufacture as your vehicle. This recommended price is set by the manufacturer and serves as the basis for calculating the excise tax, rather than the actual transaction price or the vehicle’s current market value.